Gyeonggi Gov. Choo Mi-ae repeatedly warned of a fiscal crisis, saying the province's debt is increasing "three times faster than that of metropolitan governments nationwide."
On the 14th, Gov. Choo posted on Facebook an article titled "Please evaluate Gyeonggi's reality only after you truly understand it," and countered some assessments that the province's finances are sound because its debt-to-budget ratio is lower than those of Seoul and Busan, calling it a "hollow indicator that only makes the numbers look plausible."
Gov. Choo said, "When judging an individual's debt, you don't compare only annual salary and loan amount," adding, "You also look at how much asset there is, whether income is stable, and whether there is an actual ability to repay the debt."
She then cited as grounds that Gyeonggi's liability-to-asset ratio is 15.3%, the highest among cities and provinces nationwide. As of 2024, Gyeonggi's asset is about 43.3 trillion won, smaller than Seoul's 150 trillion won, Incheon's 64 trillion won, and Busan's 50 trillion won, while its liability amounts to about 6.6 trillion won.
She also pointed to the speed of debt growth as a problem. According to Gov. Choo, the debt of metropolitan governments nationwide rose 12.7%, from 36.7 trillion won in 2023 to 41.5 trillion won in 2025. During the same period, Gyeonggi's debt increased 36.1%, from 4.5 trillion won to 6.1 trillion won.
Gov. Choo also noted the vulnerability of the revenue structure. She said acquisition tax accounts for about 50% of Gyeonggi's local government tax revenue, higher than Seoul's 23.5% and Daejeon's 21%. She said, "Gyeonggi has no tax base other than the acquisition tax," arguing that its revenue base is relatively unstable.
She said, "It is plainly clear that it will become harder to repay debt going forward, so should we really do nothing?" adding, "As a governor responsible for the lives and taxes of 14.2 million residents, I want to ask what choice should be made."
The "gray rhino (Gray Rhino)" she mentioned refers to a situation that is highly likely and sufficiently predictable but turns into a major crisis due to inadequate response.